Emaar Malls' third-quarter net profit surges 86% on higher revenue

Emaar Malls, a unit of Dubai’s biggest listed developer, Emaar Properties, reported an 86 per cent increase in third-quarter net profit owing to higher revenue as Dubai's retail sector continued to benefit from an improving economy.

Net profit for the three months to the end of September rose to Dh448 million ($122m), the company said in a statement to the Dubai Financial Market, where its shares are traded.

Third-quarter revenue increased by 36 per cent to Dh1.14 billion.

Emaar Malls' e-commerce platform Namshi recorded sales worth Dh320m during the third quarter, the company said.

The economy of Dubai, the commercial and tourism hub of the Middle East, is forecast to expand 3.1 per cent in 2021, helped by effective policy measures to minimise the impact of the coronavirus pandemic, according to data from the Department of Economic Development.

The emirate’s gross domestic product is expected to increase by 3.4 per cent in 2022.

Tourism and property sectors that are essential to Dubai's economy have made a significant recovery following stimulus packages worth Dh7.1bn since the outbreak of pandemic to support the economy, businesses and people.

The emirate's wholesale and retail trade sector is expected to regain a large part of its activity and is on track to achieve 4.7 per cent growth in 2021, according to government estimates.

Occupancy levels across Emaar Malls’ establishments remained at 91 per cent during the quarter, the company said.

Emaar Malls' net profit during the first nine months of this year soared by 83 per cent to reach Dh1bn.

In October, Emaar Properties said its shareholders approved its merger plans with Emaar Malls.

The merger, which was announced in March, has already received an approval from the Securities & Commodities Authority in September.

Emaar Malls’ shareholders will receive 0.51 Emaar Properties shares for every Emaar Malls share held.